Must read: stocks under pressure, UK GDP, Nestle
ii’s head of investment rounds up the morning’s big news.
16th October 2025 09:28
by Victoria Scholar from interactive investor
GLOBAL MARKETS
European markets are trading lower, with the DAX down nearly 0.5%. On the FTSE 100, Whitbread (LSE:WTB) is the top loser, down nearly 10% following a drop in first-half earnings. In Asia, markets were more upbeat with the Nikkei up over 1.2% and the Kospi hitting a record high.
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US futures are pointing slightly higher after stronger earnings boosted the S&P 500 and the Nasdaq on Wednesday. However, the dollar is under pressure, dropping for a third straight session. According to the US Treasury, the government shutdown could cost as much as $15 million per week.
Gold continues to scale fresh highs pushing above $4,200/oz, while silver is also in the green, buoyed by safe haven demand amid the raft of uncertainty.
UK GDP
According to the Office for National Statistics (ONS), UK GDP grew by 0.1% in August month-on-month and 1.3% year-on-year. However, the previous monthly reading for July was revised lower from 0% to -0.1%. In the three months to August, GDP was up by 0.3% thanks to growth in business rental and leasing and healthcare, and a smaller drag from the production sector. This was a slight improvement from growth of 0.2% in the three months to July.
This morning’s figures paint a lacklustre picture of the UK economy, with very modest growth and weakness in the consumer facing pockets of the services sector such as in travel agency and tour operator activities.
Data this week has revealed growing slack in the labour market, weakness in the retail sector, a gloomy inflation forecast from the IMF and now sluggish GDP. These pressures are weighing on business and consumer confidence, adding to existing uncertainty around what to expect from the later than usual Autumn Budget.
For the Bank of England, it looks a rate cut before year end is look less likely amid mounting pressures on the economy and the risk of higher inflation.
NESTLE
Nestle SA (SIX:NESN) announced plans to lay off 16,000 jobs and reported better-than-expected third quarter sales. The company behind brands like KitKat, Nesquik, and Nespresso has managed to increase prices which has helped drive higher sales without denting demand.
New CEO Philipp Navratil is clearly looking to make his mark on the business, kicking off his tenure at the helm on the right foot with aggressive plans to reduce headcount. Investors are excited by Navratil’s bold steps and are pleased that the C-suite turmoil appears to be in the rear-view mirror.
Navratil has lots to get on with including stemming the recent slide in Nestle’s share price as well as finding solutions to headwinds like unfavourable currency movements, tariff pressures, rising debts and stiff competition.
Nestle’s shares are performing very well so far today, soaring nearly 8% this morning, on track for their best one-day gain since 2008.
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